A hybrid scheme is a defined benefit scheme, which includes elements of money purchase pension design.

In a defined benefit scheme your pension scheme will use a formula, to calculate your pension benefits using 4 key elements. The formula (and the definitions for each part of it) will be set out in the Scheme Rules.

A money purchase scheme provides benefits based upon the amount of money that is in YOUR own pension ‘pot’ when benefits are due to be paid.

Find out how these types of scheme can be combined to form what’s termed a ‘Hybrid Scheme’.

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